Bitcoin continued to slide on March 28, trading near $66,200, as markets reacted to growing doubts around US-Iran de-escalation. President Donald Trump’s 10-day pause on energy strikes has not reassured investors, especially after reports that Israel continued attacks during the period.
The reaction is visible across markets.
The S&P 500 has declined steadily throughout the week, falling to its lowest level in six months.
This broad selloff signals a clear shift toward risk-off sentiment, with investors pulling back from equities as geopolitical and macro uncertainty rises.
Crypto is following the same pattern.
Bitcoin’s price action shows continued weakness, with intraday rebounds failing to hold. This reflects a deeper issue.
Markets are not treating Trump’s pause as a step toward peace, but as a delay in escalation. Reports of continued strikes have reinforced that view.
At the same time, rising Treasury yields are tightening financial conditions. Higher yields reduce liquidity and make capital more expensive, which typically pressures risk assets like stocks and crypto.
As a result, Bitcoin is trading more like a tech stock than a hedge.
In previous cycles, geopolitical tension sometimes supported Bitcoin. That is not the case now. Instead, inflation risks, elevated oil prices, and fading expectations for rate cuts are driving the market.
For now, the message is clear.
Until there is credible progress toward de-escalation and yields stabilize, crypto markets are likely to remain under pressure, with downside risk dominating in the short term.
